Hanoi (VNA) - Hanoi has attracted around 25billion USD in foreign direct investment (FDI) over the last five years, withpriority given to quality and sustainable development, figures show.

The capital city took the lead nationwide in FDIattraction during the 2018 - 2019 period. Notably, it received some 3.28billion USD in the first nine months of this year, amid the COVID-19 pandemic.

It currently has 6,278 FDI projects worth over 47.7billion USD, of which 28.5 billion USD has been disbursed.

According to Director of the municipal Department ofPlanning and Investment Nguyen Manh Quyen, FDI accounts for 12.8 percent of thecity’s total investment capital and 10.4 percent of the local budget.

Kyle Kelhofer, Country Manager for Vietnam, Cambodiaand Laos at the International Finance Corporation (IFC), pointed to Hanoi’sadvantages that favour high-tech projects, especially infrastructure andhigh-quality human resources.

Forty-one percent of Japanese firms, meanwhile, haveconsidered expanding their operations in Vietnam over the next three years, accordingto Takeo Nakajima, Chief Representative of the Japan External TradeOrganisation (JETRO) in Hanoi.

Hanoi should therefore bring into full play itsposition as one of the top 10 localities nationwide in the provincialcompetitiveness index (PCI), he suggested, in order to attract even more Japaneseinvestment.

Experts, however, have said the city must addressissues such as the slow development of industrial zones and clusters, high landrentals, and small-scale support industry, to attract high-quality FDIprojects.

According to the municipal Department of Planning andInvestment, Hanoi expects to attract 30-40 billion USD in FDI during the2011-2025 period, of which 20 billion USD - 30 billion USD will be disbursed.

The number of businesses using cutting-edgetechnologies and modern management and environmental protection methods isexpected to increase by 50 percent by 2025 compared to 2018, while the rate oflocally-made content is to reach 30 percent.

To that end, Director of the Department of Planningand Investment Nguyen Manh Quyen said Hanoi will continue to target qualityprojects, especially with partners such as Japan, the United States and Europe,to step up technology transfer.

Minister of Planning and Investment Nguyen Chi Dungsaid that developing digital technology, precision mechanics, automation, andsemi-conductor technology will push ahead with Hanoi’s industrialisation andmodernisation.

He suggested the capital city develop a number ofurban economic models, saying it is likely to become the country’s creativecentre.

It is working to improve its business environment,devise a plan for the support industry by 2025, and complete industrial parksand clusters and transport infrastructure, while building e-government to makebusiness registration and tax declarations and payments easier for enterprises.

Phan Duc Hieu, deputy head of the Central Institutefor Economic Management at the Ministry of Planning and Investment (MPI), saidHanoi should employ mechanisms that help promote links between domestic andforeign firms, encourage multi-national groups to invest in the city, and developcreative and innovation centres.

Local authorities have regularly held dialogue withinvestors and helped them seek development opportunities by removingdifficulties.

The “Hanoi: Investment and Development Cooperation”conference, which is held annually with the participation of a large number ofinvestors, confirms the city is a safe and attractive investment destination.

Secretary of the municipal Party Committee Vuong DinhHue pledged at a recent meeting with representatives from the Ministry ofPlanning and Investment that Hanoi will further create optimal conditions forinvestors by working with them and sharing their difficulties.

Attracting FDI will raise the city’s competitivenessand materialise its target of rapid, sustainable, and modern development, he emphasised./.